Evgenia Timofeenko, CEO of REA Mayak: What Main Tasks Real Estate Investments Solve

Investing money can be done in various ways, ranging from buying stocks and cryptocurrency to investing in businesses, among others. However, investing in real estate is often considered the most reliable and conservative option. To minimize the risks of losing capital, it is advisable to not only use high-risk instruments but also more stable ones. With the right approach, the latter can give a good return as well. Evgenia Timofeenko, the owner and CEO of АН Mayak Real Estate, shares more about the features and benefits of investing in foreign real estate.

Capital preservation through real estate investment

"Our agency's clients include both experienced and novice investors. Many of them invest money in different instruments, diversifying risks. When there is an opportunity to withdraw a sufficiently large amount of money from risky instruments, they buy real estate, as it belongs to more stable instruments. And we are always happy to help you choose a profitable object, so that a stable instrument will also continue to bring good income" - shares Evgenia Timofeenko

Real estate investing plays an important role in capital preservation. Investors can buy highly liquid properties that can be sold quickly at a good price. Generally, such properties are located in the city center, near attractions, universities, the seaside, and other important infrastructure.

Capital appreciation through the purchase of foreign real estate

Real estate investments can provide an opportunity for capital appreciation. The strategy typically involves purchasing a property during the excavation stage and selling it upon or shortly after completion. This investment approach can yield returns of 20% to 100% annually, depending on the type of property selected. Moreover, many foreign developers offer installment plans without appreciation, which is advantageous for investors.

"Installment payment without appreciation is a great solution for many investors who cannot pay the entire amount at once when buying an apartment. For example, the housing costs 100 000 dollars and it is necessary to pay 35-70% of the cost at once, and the rest can be paid over several years (maybe until the end of construction or a couple of years). The investor immediately pays a minimum of 35 000 dollars and within 1 year, for example, pays another 20 000 dollars, that is, in fact, invests 55 thousand. After that the house is put into operation and the apartment is sold for 150 000 dollars. In fact, the investor earns 50 000. If you calculate the return on the invested capital, you get 100% per annum,"- Evgeniya gives an example.

Obtaining passive income from renting out real estate

By investing in real estate you can solve such a problem as passive income. The object can be rented out on a long-term or daily basis

When you rent out a residential property abroad for a long period of time, you can earn a minimum of 7% per year. The most important thing is to select the right apartment or house. If you have a good object in a good location, you can earn up to 15% per year by renting it out on a daily basis

When buying apartments or villas to rent out, it is best to choose an agency that has its own management company. The investor can live in another country, while his foreign real estate will be handled by specialists: look for clients, run advertising, control payment and solve many other organizational issues. This significantly saves time and nerves for the homeowner.

Choosing a real estate object for investment

"If an investor has already decided on a country, we help him or her find a number of profitable objects to invest in. The staff of our Mayak Real Estate agency can also select offers in different countries, if the future investor does not yet have an understanding of where to go. When making a choice, we take into account the budget and the purpose of investment - preservation or multiplication of capital, obtaining passive income. We can also take into account parallel objectives, for example, if the investor wants the apartment to be a backup in case of children's education abroad,"- says Evgenia Timofeenko.

The choice of countries for investing in real estate is wide. The most interesting options for potential investors are the UAE, Saudi Arabia, Qatar, Bahrain, Bali, Thailand, Montenegro, Spain, USA, UK, Portugal. In each of these countries you can find profitable objects from developers for purchase and resale, as well as for purchase and lease for short or long term. If the task is to buy two or more objects for investment, the best solution - diversification, that is, invest in real estate in different countries.

It's best to work with the same agent when choosing a property for resale. This ensures that the specialist selects highly liquid options, which sell quickly and at a good price.

Determining the purpose of investment is crucial when choosing a property. An experienced agent can assist in identifying the most favorable options for a particular investor's situation.